The British pound fell sharply vis-Ã -vis the U.S. dollar today as cable tested bids around the US$ 1.9450 level and was capped around the $1.9580 level. Cable reached its lowest level since March 2007. Data released in the U.K. today saw the December M4 money supply accelerate to an annualized 12.3% from 11.7% in November while December public sector net borrowing printed at ₤7.8 billion, its largest December deficit on record. Also, BSA reported December mortgage approvals slumped and CML noted December mortgage lending fell to its lowest level since the middle of 2005. Moreover, January Rightmove house prices dropped 0.8% m/m. Traders are also paying close attention to the situation involving troubled U.K. lender Northern Rock Plc. The British government today said it favours a private-sector buyout of the bank. Cable bids are cited around the US$ 1.9260 level. The euro weakened vis-Ã -vis the British pound as the single currency tested bids around the ₤0.7420 level and was capped around the ₤0.7460 level.
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